UC-NRLF 


B    3    hflM    7T1 


Bolivia 


AS   A    FIELD    FOR   AMERICAN 
CAPITAL 


From   the 

BANKERS'    MAGAZINE 

of  July,  1907 


IMMIGRATION 
REGULATIONS 


NEW     YORK 


Bolivia 


AS  A   FIELD   FOR  AMERICAN 
CAPITAL 


From  the 

BANKERS'    MAGAZINE 

of  July,  1907 


IMMIGRATION 
REGULATIONS 


NEW  YORK 


--t*--^^  ^^"^ 


EDITORIAL    COMMENT    OF    THE    BANKERS* 
MAGAZINE. 

Bolivia's  natural  resources  are  the  subject  of  an  interesting 
and  instructive  article  in  this  issue  of  the  Magazine,  con- 
tributed by  Senor  Calderon,  the  Bolivian  Minister  to  the  United 

St3.tCS 

For  centuries  the  rich  mines  of  Bolivia  have  added  inamense 
sums  to  the  world's  mineral  wealth,  yet  they  are  far  from  being 
exhausted.  On  the  contrary  with  the  building  of  railways  it  is 
likely  that  the  mineral  production  of  the  country  will  be  enor- 
mouslv  increased.  There  are  numerous  other  sources  of  wealth 
hardly  less  important.  The  forests  of  rubber  and  hard  wood ; 
the  products  indigenous  to  the  country  and  which  are  now 
largely  imported  into  the  United  States  by  way  of  Europe ;  the 
vast  areas  suitable  for  grazing  purposes— all  these  constitute 
the  foundations  upon  which  is  being  reared  a  stable  structure 
of  national  prosperity. 

The  great  variety  of  soil  and  climate,  the  wealth  of  raw  ma- 
terials and  the  multiplying  wants  of  a  population  continually 
advancing  in  its  requirements  and  in  the  ability  to  pay  for 
them  must  likewise  aflford  excellent  openings  for  manufactur- 
ing establishments.  With  the  completion  of  the  railway  sys- 
tems now  under  way— and  which,  through  the  energy  of  Min- 
ister Calderon,  are  being  done  in  part  by  American  capital- 
large  cities  will  spring  up,  and  the  country  generally  will  un- 
dergo a  development  not  unlike  that  which  has  taken  place  in 

the  United  States. 

Of  course  theorists  tell  us  that  our  trade  with  the  Latin- 
American  countries  can  never  be  of  much  importance,  because 
their  products  too  closely  resemble  our  own.  Official  figures 
contradict  this  view.  Our  trade  with  Latin  America  increased 
from  a  total  of  $234,000,000  in  1897  to  $610,000,000  in  1907, 
and  a  movement  is  now  setting  in  toward  the  southern  coun- 
tries that  is  destined  to  add  to  our  trade  with  them  in  a  still 
greater  ratio  in  the  coming  decade. 


Readers  of  The  Bankers'  Magazine  are  fortunate  in  having 
the  resources  of  BoHvia  described  to  them  by  so  eminent  and 
conservative  an  authority  as  Minister  Calderon,  who  not  only 
occupies  a  distinguished  position  in  the  diplomatic  world,  but 
has  also  been  connected  with  large  banking  interests  in  his 
country,  and  before  coming  to  the  United  States  was  Secretary 
of  the  Treasury  in  the  cabinet  of  President  Pando. 

Capital  and  enterprise  receive  their  best  rewards  in  opening 
up  virgin  territory,  though  somewhat  keener  judgment  is 
needed  to  avoid  an  overreaching  for  profit.  It  is  believed  that 
Americans  have  the  perception  necessary  to  realize  an  oppor- 
tunity for  profitable  business  and  the  discretion  to  make  a  judi- 
cious use  of  it.  That  exceptional  opportunities  exist  for  the 
profitable  employment  of  capital  and  enterprise  in  many  of  the 
Latin  American  countries  is  undoubted,  and  that  Americans 
will  be  content  to  see  these  opportunities  taken  up  by  others 
alone  is  not  believable. 

Papers  like  that  of  Minister  Calderon  will  serve  an  excellent 
purpose  in  calling  attention  to  the  resources  of  the  South 
American  countries.  It  is  to  be  hoped  that  some  of  our  bank- 
ers, representatives  of  commercial  organizations,  manufactur- 
ers' associations,  etc.,  will  be  sufficiently  interested  to  visit  the 
various  countries  and  make  a  personal  investigation  of  their 
commercial  possibilities.  A  better  acquaintance  between  the 
peoples  of  the  northern  and  southern  continents  would  be  of 
mutual  benefit. 


BOLIVIA. 

A  Neglected  Field  of  Great  Opportunities. 


GEOGRAPHY — CLIMATE  AND  RIVERS — INTERNATIONAL  COMMERCE 

OBSTACLES       TO       PROGRESS — RAILWAYS GOVERNMENT — 

BANKS  AND  MONETARY  SYSTEM. 


By  Ignacio  Calderon, 
bolivian  minister  to  the  united  states. 


Nothing  draws  together  or  unites  nations  or  individuals  more 
closely  than  a  community  of  interests  and  good  will.  Neigh- 
bors living  in  adjoining  houses  who  maintain  the  unapproach- 
able spirit  and  a  total  indifference  to  things  that  might  be  of 
mutual  interest,  and  neglect  to  cultivate  friendly  relations,  re- 
main as  complete  strangers  as  if  one  or  the  other  inhabited  the 
antipodes. 

To  this  spirit  of  aloofness  may  be  attributed  the  lack  of  in- 
tercourse between  the  countries  of  North  and  South  America. 
Many  persons  have  such  a  confused  idea  of  the  countries  lying 
south  of  Panama  that  the  fact  is  truly  lamentable.  The  belief 
seems  to  prevail  that  the  republics  of  South  America  are  a 
great  distance  away,  while  in  reality  some  of  them  are  no^ 
farther  from  us  than  the  nations  of  Europe,  and  others  are 
even  much  nearer. 

Fortunately,  from  the  time  of  the  memorable  voyage  of  the 
Secretary  of  State,  Mr.  Root,  last  year  there  has  been  a  pro- 
nounced reaction  in  this  respect,  and  today  there  is  a  general 
desire  for  information  about  the  South  American  republics,, 
extending  from  Panama  to  Cape  Horn. 

An  Interesting  Picture. 

The  unbiased  observer  who  studies  the  progressive  move- 
ment and  the  stability  so  noticeable  throughout  these  countries 
will  easily  see  that  there  lies  a  profitable  and  wonderful  field 
capable  of  unprecedented  development. 

The  young  republics  of  South  America  occupy  a  vast  terri- 


6 

tory  of  more  than  seven  and  one-half  million  square  miles,  with 
a  population  hardly  reaching  a  total  of  sixty  millions ;  and  with 
an  international  commerce  amounting  to  nearly  $1,500,000,000, 
yet  the  United  States'  share  in  this  large  amount  is  scarcely 
twenty  per  cent. 

The  variety  of  products  found  in  this  vast  territory  of  mag- 
nificent prairies  and  forests,  rich  in  tropical  and  temperate 
zone  products,  and  high  mountains  abounding  in  incalculable 
mineral  wealth,  should  be  a  subject  of  special  study  and  inter- 
est for  the  North  American  people. 

In  this  article  it  is  proposed  to  give  a  sketch  of  one  of  the 
most  interesting  as  well  as  one  of  the  richest  South  American 
countries,  which,  however,  is  so  little  known. 

Bolivia  and  Its  Geography. 

The  Republic  of  Bolivia  is  situated  in  the  heart  of  South 
America.  A  mediterranean  country  enclosed  between  great 
branches  of  the  Andes,  but  occupying  a  most  important  posi- 
tion from  an  economic  and  international  standpoint.  Lying  in 
longitude  west  59  degrees  40  minutes  to  j'^  degrees  20  min- 
utes (Paris  meridian)  and  in  latitude  9  degrees  35  minutes  and 
25  degrees  30  minutes  in  the  eastern  section  and  1 1  degrees  23 
minutes  towards  the  west,  it  covers  an  area  of  more  than  709,- 
000  square  miles.  It  is  bounded  on  the  north  and  east  by 
Brazil;  on  the  south  by  Argentina  and  Paraguay,  and  on  the 
west  by  Peru  and  Chili.  • 

The  Cordilleras  of  the  Andes,  traversing  the  whole  length  of 
the  continent,  divide  themselves  in  Bolivia  into  two  principal 
branches :  the  one  of  the  west,  forming  a  kind  of  wall  between 
the  sea  and  the  interior,  closely  follows  the  coast ;  the  other, 
extending  towards  the  cast  and  known  as  the  Cordillera  Real, 
presents  a  series  of  peaks  eternally  resplendent  in  crowns  of 
snow  and  lifting  their  heads  to  heights  of  more  than  21,000 
feet,  as  Illimani,  and  the  Illampu  with  an  elevation  of  21,700 
feet,  and  others  equally  imposing. 

The  high  plateau  of  Bolivia  occupies  an  area  of  more  than 
66,000  square  miles,  with  a  mean  altitude  of  from  10,000  to 
13,000  feet  above  sea  level. 


It  is  difficult  to  say  whether  the  obstacles  offered  by  the  vast 
mountain  walls  to  free  commerce  and  the  communication  of  the 
people  is  not  more  than  compensated  by  the  prodigious  quan- 
tity of  minerals  these  mountains  contain,  making  Bolivia  one 
of  the  richest  countries  of  the  globe. 

The  forests  and  vast  plains  extending  eastward,  with  about 
7,000  miles  of  navigable  rivers,  comprise  a  fertile  agricultural 
territory  embracing  more  than  304,000  square  miles. 

If  the  natural  exuberance  and  richness  of  the  eastern  section 
of  Bolivia  is  remarkable  for  its  products,  the  region  of  the 
Cordilleras  is  the  great  storehouse  of  mineral  wealth.  The  sil- 
ver mines  of  Potosi,  Oruro,  Colquechaca,  Huanchaca,  and 
many  others,  have  contributed  hundreds  of  millions  to  the  rich- 
ness of  the  world.  No  less  abundant  are  the  deposits  of  cop- 
per, bismuth,  zinc,  cobalt,  gold  and  tin. 

As  the  Spaniards  settled  first  in  the  mining  regions,  the  sec- 
tion of  Bolivia  situated  east  of  the  Cordillera  Real,  which  in- 
cludes the  extensive  territories  watered  by  the  tributaries  of  the 
Amazon  and  the  Plata,  is  the  least  populated.  There  are  found 
the  vast  forests  filled  with  fine  woods  suitable  for  all  industrial 
purposes,  such  as  railway  ties,  building  and  cabinet-making. 
Some  of  these  woods  are  as  hard  as  iron.  Rubber,  peruvian 
bark,  and  a  multitude  of  useful  and  medicinal  plants  abound  in 
this  soil,  whose  wonderful  fertility  could  easily  support  many 
millions  of  inhabitants.  The  coffee  and  cocoa  are  conceded  to 
be  of  the  finest  quality ;  fruits  and  all  tropical  products  are 
abundant.  The  climate  is  generally  healthful  and  suitable  for 
settlement  by  European  races. 

The  Climate. 

The  mean  temperature  of  the  lowlands  of  the  Amazon  to  an 
altitude  of  2,000  feet  above  sea  level  is  seventy-four  degrees ; 
to  an  altitude  of  8,000  it  is  sixty-six  degrees ;  and  in  the  central 
plain,  where  the  altitude  varies  from  10,000  to  12,000  feet,  it  is 
fifty  degrees. 

It  is  calculated  that  to  every  181  meters  of  ascent  of  the 
mountains  there  is  a  drop  of  one  degree  in  the  temperature. 


8 

It  may  be  said  that  in  Bolivia  there  are  only  two  seasons — 
the  rainy  season,  which  corresponds  to  summer,  and  extends 
from  December  to  May,  and  the  dry  or  winter  solstice,  lasting 
from  May  to  December.  In  the  latter  months  it  seldom  rains 
and  the  sky  is  clear  and  bright.  The  rains  are  more  copious  in 
the  east  and  at  times  the  rivers  overflow  and  rise  as  high  as  ten 
meters  above  their  ordinary  level. 

The  Rivers. 

Almost  all  of  the  navigable  rivers  of  Bolivia  flow  into  the 
Amazon,  the  most  important  being  the  Beni,  which  receives 
the  Madre  de  Dios,  the  Orton  and  others  before  reaching  its 
confluence  with  the  Mamore,  where  it  takes  the  name  of  Ma- 
deira, one  of  the  most  powerful  tributaries  of  the  Amazon. 

Unfortunately,  the  navigation  of  this  great  river  is  ob- 
structed by  a  series  of  very  dangerous  rapids.  The  Govern- 
ment of  Brazil  has  agreed  by  treaty  to  construct  a  railroad 
around  these  rapids  and  thus  expedite  the  Amazon  route. 

The  Pilcomayo  and  the  Bermejo  are  rivers  of  importance 
flowing  toward  the  southeast  and  emptying  into  the  Paraguay. 
The  eastern  section  of  Bolivia  is  also  rich  in  grazing  lands, 
where  the  stock  industry  promises  to  be  highly  lucrative.  To- 
day there  are  found  vast  herds  of  wild  cattle  roaming  over  the 
lands. 

Lake  Titicaca  on  the  boundary  line  between  Peru  and  Boli- 
via is  notable  for  its  great  altitude,  for  its  romantic  traditions 
and  for  the  monuments  of  that  distant  epoch  yet  standing  on 
the  Island  of  the  Sun.  The  lake's  surface  covers  an  area  of 
more  than  5,200  square  miles. 

International  Commerce. 

During  the  last  few  years  the  commerce  of  Bolivia  has  in- 
creased considerably.  In  1905  it  reached  69,665.000  in  Bolivian 
money ;  an  increase  of  thirty  per  cent  over  the  figures  of  the 
previous  year;  and,  according  to  the  statement  of  President 
Montes  in  his  last  message  to  Congress,  in  1906  it  reached 
eighty  millions ;  and  when  the  railroads  now  in  course  of  con- 


9 


struction  are  completed  these  figvires  could  be  easily  doubled  ui 

^  The'conmierce  with  the  United  States  has  also  grown  in  re- 
cent years,  and  the  construction  of  the  railways  will  greatly 
Iug:.ent  the  present  movement.  The  importations  into  Bolivia 
in  1905  amounted  to  $1,720,000,  and  yet  this  small  sum  is  a 
large  increase  compared  with  previous  years. 

During  the  first  two  months  of  the  present  year  the  exporta- 
tions  to  Bolivia  marked  a  great  improvement,  and  amounted 

'"ofiroL  hand,  the  importations  of  Bolivian  products 
into  the  United  States  hardly  reached  $60,000,  while  Bolivia 
produced  rubber,  tin,  cocoa,  cocoa  leaves,  P--^  ^^^2; -\^. 
manv  other  articles  of  great  consumption  in  the  United  States, 
and  which  are  purchased  in  Europe  to  be  brought  here. 

The  exportation  of  silver  averages  13,000,000  ounces  a  year , 
copper  5000  tons  more  or  less;  the  production  of  tin  grows 
from  yea  to  year,  so  that  from  1897,  or  ten  years  ago,  when 
the" reduction  was  about  3,000  tons,  it  had  reached  17,000  in 
1905,  and  during  the  past  year  it  is  probable  that  the  exporta- 
tion exceeded  20,000  tons  of  pure  tm. 

It  is  impossible  to  foresee  the  marvelous  development   that 
railway  facilities  will  give  to  this  industry,  as  well  as  to  the 
general  progress  of  the  country.    Bismuth,  zinc  and  gold  rep- 
resent quantities  no  less  important. 

Obstacles  to  Progress. 
The  main  causes  that  hinder  the  development   of    Bolivia's 
wealth  are  the  difficulty  and  the  cost  of  transportation,  the  lack 
of  capital  and  the  scarcity  of  population.    To  show  to  what  an 
exten'  the  high  rate  of  freight  hinders  the  growth  of  industn 
in  Bolivia  it  fs  enough  to  state  that  coal  at  the  seacoast  is  worth 
from  eighteen  to  twenty-five  shillings,  or  say  four  to  five  dol- 
lars  more  or  less,  per  ton;  taken  to  the  mines  in  the  interior 
of  Bolivia,  according  to  the  distance,  yet  this  may  not  exceed 
five  hundred  miles,  'and  the  price  will  be  f-m  forty  to  eighty 
dollars.    Efforts  are  being  made  to  overcome  this  difficulty  by 
means  of  electric  and  hydraulic  power. 


10 

In  spite  of  all  the  obstacles  that  the  Bolivian  industries  have 
encountered  on  passing  through  the  Amazon,  the  exportation 
of  rubber  in  1905  amounted  to  1,700,000  kilos.  This  is  a  prod- 
uct whose  output  could  be  increased  when  the  railways  now 
building  are  completed.  Sir  Martin  Conway  calculates  as  not 
improbable  that  there  may  be  about  fifty  million  rubber  trees 
in  the  region  of  the  Upper  Beni  alone.  Each  tree  is  supposed 
to  yield  annually  from  three  to  seven  pounds  of  rubber. 

Railways  Under  Construction. 

As  the  principal  means  of  developing  a  country  is  to  make 
it  attractive  and  profitable  for  the  immigrant  and  to  facilitate 
the  exportation  of  its  riches,  the  Government  of  Bolivia  has 
entered  upon  the  construction  of  railways,  which  are  so  neces- 
sary for  the  progress  of  modern  peoples. 

The  position  Bolivia  occupies  in  the  heart  of  South  America 
gives  her  commercial  and  international  importance,  and  al- 
though deprived  of  her  coast  on  the  Pacific,  she  is  in  immedi- 
ate contact  with  five  of  the  most  advanced  republics ;  and  it  is 
to  their  interests  to  encourage  a  mutual  trade  for  the  benefits 
that  will  naturally  result.  And  this  is  not  all ;  the  main  railway 
line  under  construction  in  Bolivia  has  a  continental  bearing,  as 
it  will  establish  connection  between  the  Argentine  system  that 
is  now  being  extended  into  the  interior  of  Bolivia  with  the 
Peruvian  railroads  coming  from  the  north  and  the  Pacific 
coast.  Then  Lima  in  Peru,  La  Paz  in  Bolivia,  and  Buenos 
Aires  in  the  Argentine  will  be  united  within  a  few  years  by  a 
continuous  railway  spanning  the  2,500  miles  more  or  less  that 
separate  the  capital  of  Peru  on  the  Pacific  from  the  capital  of 
Argentina  on  the  Atlantic,  and  which  will  form  an  important 
section  of  the  Pan-American  Railway. 

The  lines  to  be  constructed  by  the  American  syndicate  are 
from  La  Paz  to  Tupiza,  530  miles;  Oruro  to  Cochabamba.  133 
miles  ;  and  La  Paz  to  Puerto  Pando.  200  miles ;  in  all  863  miles. 

Of  these  railroads  the  one  from  La  Paz,  passing  bv  Oruro 
and  Potosi  to  Tupiza,  will  form  the  chain  uniting  the  republics 
of  the  Pacific  with  those  of  the  Atlantic,  besides  traversing  the 


11 

richest  metallic  zone  that  exists,  perhaps,  in  the  world.  The 
line  from  Oruro  to  Cochabamba  will  open  to  commerce  the  fer- 
tile valleys  of  the  interior  of  that  section — the  most  thickly- 
populated  portion  of  Bolivia — and  make  that  part  of  the  coun- 
try accessible  to  the  navigable  branches  of  the  Mamore. 

The  railroad  from  La  Paz  to  Puerto  Pando,  a  port  situated 
at  the  headwaters  of  the  Beni,  will  open  the  territories  of  the 
Beni,  where  rubber  grows  in  such  abundance,  also  coffee  and 
all  the  most  valuable  tropical  products,  as  well  as  the  various 
classes  of  woods.  This  railway  will  have  the  peculiarity  of 
passing  in  a  few  hours  from  the  frigid  zone  of  the  high  plains, 
where  there  is  practically  no  vegetation,  to  the  tropical  region 
of  the  orange  and  sugar  cane.  In  a  distance  of  less  than  thirty 
miles  the  traveler  will  be  transported,  as  if  by  magic,  from  a 
temperature  of  perhaps  forty  degrees  or  less  to  one  of  seventy 
or  more,  as  he  descends  through  wonderful  scenery  to  the  other 
side  of  the  great  eastern  chain  of  the  Andes. 

But  these  railroads  are  not  the  only  ones  that  are  to  trans- 
form in  a  comparatively  few  years  the  economic  life  of  Bolivia 
and  give  her  the  rank  and  importance  to  which  her  size  and 
position  entitle  her.  By  a  treaty  of  peace  recently  celebrated 
with  Chili  that  Republic  agrees  to  build  (and  work  has  already 
commenced)  a  railroad  from  Arica  to  La  Paz,  a  distance  of 
some  300  miles.  That  line  will  unite  Bolivia  with  the  Pacific 
by  a  road  much  more  direct  than  that  at  present  afforded  by 
the  Antofagasta  line,  which  is  575  miles  long,  or  that  from 
Mollendo  to  La  Paz  via  Lake  Titicaca,  a  distance  of  563  miles, 
and  will  bring  the  city  of  La  Paz  within  eight  or  ten  hours' 
time  of  the  coast. 

The  Bolivian  Congress  authorized  more  than  a  year  ago  the 
building  of  a  railway  from  the  borders  of  the  River  Paraguay 
to  Santa  Cruz,  one  of  the  most  mediterranean  cities,  but 
destined  to  become  one  of  great  importance.  The  projectors 
have  deposited  the  sum  of  100,000  pesos  as  a  guaranty  for  the 
execution  of  the  contract,  and  the  construction  materials  have 
begim  to  be  transported  by  way  of  the  Plata  and  the  Paraguay 
rivers.  The  length  of  this  line  will  be  497  miles.  This  will 
offer  free  communication  to  the  rich  oriental  zone  by  way  of 


12 

the  Plata  and  the  Paraguay  and  open  to  immigration  and  prog- 
ress a  territory  of  more  than  242,000  square  miles,  watered  by 
large  rivers  and  of  remarkable  fertility.  There  are  on  foot 
other  projects  of  railway  construction  of  no  less  importance. 

Government. 

Bolivia  has  a  constitution  based  on  the  unitarian  form  of  cen- 
tral government.  The  executive  power  is  vested  in  a  presi- 
dent elected  every  four  years  by  direct  vote  of  the  citizens, 
and  who  cannot  be  a  candidate  for  re-election  until  after  an  in- 
tervening term. 

There  are  six  cabinet  ministers,  selected  by  the  president ; 
but  Congress  has  the  right  to  examine  their  acts,  which  if  not 
approved  may  cause  their  resignation. 

Congress  is  composed  of  two  houses:  The  Deputies,  who 
are  elected  in  accorda-nce  with  the  number  of  inhabitants  of 
their  respective  sections ;  and  the  Senators,  two  for  each  of  the 
eight  departments  into  which  the  Republic  is  divided. 

The  judicial  power  is  vested  in  a  Supreme  Court,  whose 
members  are  appointed  by  the  Senate;  and  lower  courts  and 
judges.  The  members  of  the  Supreme  Court  are  elected  for 
ten  years  and  the  other  judges  for  four  years. 

Foreigners  have  the  same  rights  as  the  natives,  excepting 
that  of  suffrage,  and  may  become  members  of  the  municipal 
bodies  of  the  places  where  they  establish  their  residence. 


Banks  and  Money  System. 

The  establishment  of  banks  in  Bolivia  is  regulated  by  a  law 
promulgated  September  30,  1890. 

There  are  today  in  Bolivia  five  banks  of  issue  and  three  mort- 
gage banks.  The  first  bank  was  established  in  1867.  Accord- 
ing to  law  any  person  desiring  to  open  a  bank  of  issue  must 
ask  authorization  from  Congress,  which  being  granted,  it  is 
then  required  to  show  proof  of  the  necessary  capital.  This 
should  be  at  least  500,000  bolivianos  in  hard  money,  or  silver 
and  gold  bars.    The  head  of  the  bank  is  obliged  to  make  affi- 


13 

•davit  that  these  funds  are  the  property  of  the  bank  and  form  its 
■capital. 

The  bank  may  then  proceed  to  issue  notes  of  one,  five,  ten 
and  one  hundred  boHvianos  up  to  an  amount  equal  to  one  hun- 
dred and  fifty  per  cent  of  the  capital ;  and  must  keep  on  hand 
at  least  thirty  per  cent  of  the  value  of  the  notes  issued.  The 
loans  to  one  individual  or  corporation  must  not  exceed  ten  per 
cent  of  the  capital.  The  bank  is  obliged  to  convert  its  bills  into 
money  upon  presentation. 

Bolivia  has  never  had  paper  money,  and  currency  is  on  the 
hard-money  basis.  The  banks  cannot  lend  on  real  estate.  Gen- 
erally they  allow  credit  on  current  accounts,  with  guaranteed 
collateral  or  under  the  endorsement  of  two  concerns  of  recog- 
nized standing. 

For  obtaining  money  on  real  estate  there  are  special  instit;i- 
tions  called  mortgage  banks,  which  lend  on  this  class  of  securi- 
ties exclusively.  Such  loans  must  not  in  any  case  exceed  fifty 
per  cent  of  the  value  of  the  real  estate.  They  are  made  for  a 
fixed  term  of  amortization  so  that  at  the  expiration  of  their 
time  the  debt  becomes  paid. 

The  interest  charged  by  the  mortgage  banks  is  eight  and  ten 
per  cent,  with  an  additional  commission  of  one-half  per  cent, 
and  so  much  for  the  amortization  of  the  capital,  according  to 
the  time  of  the  loan. 

Bolivian  money  is  based  on  the  silver  standard,  the  monetary 
unit  being  the  boliviano,  which  is  a  piece  of  silver  900  fine, 
weighing  twenty-five  grams.  The  smaller  pieces  are :  the  half 
boliviano,  of  twelve  and  one-half  grams ;  the  peseta  of  five 
grams;  the  real  of  two  and  one-half  grams;  the  half  real  of 
1.200  grams.  For  the  latter  there  have  been  substituted  the 
nickel  five  and  ten  centavos  and  the  copper  one  and  two  cen- 
tavos. 

The  bank  bills  represent  denominations  of  one,  five,  ten, 
twenty  and  one  hundred  bolivianos.  The  value  of  the  boliviano 
fluctuates,  varying  with  the  price  of  silver,  but  recently  it  has 
been  steady  at  twenty  d.,  or  forty  cents  gold. 

In  the  Congress  of  the  latter  part  of  last  year  the  Govern- 
ment presented  a  project  of  legally  adopting  the  gold  standard, 


14 

which  will  overcome  the  inconvenience  of  the  fluctuations  in^ 
vahies.  The  plan  is  to  make  the  standard  gold  money  of  twelve- 
and  one-half  bolivianos  equivalent  in  value  to  the  pound  ster- 
ling. 

The  establishment  of  the  gold  standard  will  greatly  help  the 
stability  of  values,  thereby  attracting  the  investment  of  for- 
eign capital. 

All  of  the  Bolivian  banks  are  established  with  national  capi- 
tal, and,  as  a  rule,  they  produce  an  annual  dividend  for  their 
shareholders  of  from  ten  to  twelve  per  cent  net.  Recently  the 
Banco  Aleman  Transatlantico  and  some  other  German  banks 
have  established  branches  in  La  Paz  and  Oruro. 

The  great  development  of  the  mining  industries  and  the  in- 
creased traffic  that  will  follow  the  completion  of  the  railways 
will  offer  a  very  profitable  and  sure  field  for  foreign  invest- 
ment and  enterprise. 

The  Country's  Mineral  Resources. 

The  mines  are  one  of  the  principal  sources  of  wealth  of 
Bolivia.  The  laws  relating  to  the  adjudication  of  mining 
properties  are  very  liberal.  Any  person  possessing  the  legal 
capacity  to  contract  may  ask  for  as  many  as  thirty  hectareas 
in  new  mining  regions,  and  an  unlimited  number  of  hectareas 
in  sections  already  exploited.  To  the  request  there  must  be 
attached  a  stamp  for  ten  bolivianos  ($4),  and  if  there  is  no  op- 
position the  applicant  becomes  the  owner  of  the  property,  sub- 
ject to  a  small  contribution,  called  the  patcntc,  payable  an- 
nually. 

In  the  section  embraced  between  Oruro  and  Potosi,  and  in 
many  places  in  the  Department  of  La  Paz,  are  found  numer- 
ous lodes  of  tin  mines,  many  of  which  are  being  actively 
worked. 

In  order  to  form  an  idea  of  the  benefits  of  this  work  it  is 
well  to  take  into  consideration  the  following  facts: 

The  price  of  pure  tin  in  London  in  recent  years  has  fluctu- 
ated between  182  and  198  pounds  sterling  per  ton.  For  the 
following  figures  we  will  take  the  minimum  price  of  £180  per 


15 

ton.  As  Bolivia  exports  the  greater  part  of  tin  unrefined, 
called  barrillas,  which  is  the  crude  metal  averaging  sixty  per 
cent ;  the  result  is  that  a  ton  of  barilla  de  estano  represents  a 
value  of  £io8  net.  The  profit  of  the  mines  is  more  than  one 
hundred  per  cent,  according  to  these  figures ;  as,  counting  the 
cost  of  mining,  payment  of  duty  and  freight  to  Europe  does 
not  exceed  £52  per  ton. 

Naturally,  in  some  cases  the  cost  may  be  much  less,  because 
this  depends  upon  the  richness  of  the  mineral,  the  machinery 
used,  etc. 

The  exploitation  of  copper  offers  equally  as  advantageous 
results,  and  is  not  more  costly  than  tin. 

Other  Industries. 

In  the  pampas  of  northeast  BoHvia,  with  an  outlet  to  the 
Argentine  Republic,  it  is  possible  to  develop  the  grazing  indus- 
try on  a  great  scale,  as  in  the  provinces  of  the  Gran  Chaco, 
Santa  Cruz  and  part  of  the  Department  of  Chuquisaca  there 
are  extensive  lands  where  grazing  could  be  developed  to  great 
advantage  and  at  a  small  cost. 

Regarding  the  exploitation  of  rubber,  in  all  the  eastern  re- 
gion about  the  tributaries  of  the  Amazon,  such  as  the  Beni, 
Mamore  and  the  Madre  de  Dios,  are  found  vast  forests  of 
rubber  trees,  whose  exploitation  offers  a  profitable  field. 

These  industries  demand  capital  for  development  on  a  large 
scale. 

On  account  of  the  development  of  the  mining  industry  in 
BoHvia  there  is  a  great  demand  for  all  kinds  of  mechanical 
appliances,  and  therefore  the  manufacturers  could  find  a  good 
market  for  their  products. 

IMMIGRATION  LAW  PROMULGATED 
MARCH  18,  1907. 

Section  i. — Concerning  the  immigrant  and  his  privileges. 

Article  i.  An  immigrant  is  any  alien  agricultural  or  indus- 
trial worker,  under  60  years  of  age,  who,  upon  proof  of  good 
moral  character  and  efficiency,  desires  to  locate  in  the  Republic. 


16 

Art.  2.  The  immigrant  who  comes  to  locate  in  the  country 
shall  enjoy,  at  the  present  time,  the  following  privileges: 

(a)  The  right  to  travel  to  his  place  of  destination  over  rail- 
ways and  highways  of  the  Republic. 

This  right  extends  to  his  wife  and  male  children  over  i8 
years  of  age. 

(b)  The  right  to  transport  his  baggage  free  of  duty. 

By  baggage  is  understood :  His  bed  and  domestic  kitchen 
and  household  utensils ;  the  tools  of  his  trade  or  profession, 
and  a  firearm  for  hunting  purposes. 

(c)  The  right  to  occupy  public  lands  for  agricultural  pur- 
poses, stock  raising,  or  useful  industries. 

Each  immigrant  may  occupy  50  hectares,  the  valuation  of 
which  is  fixed  at  10  cents  per  hectare. 

(d)  Children  over  14  years  of  age  shall  have  the  right  to  25 
hectares. 

(e)  The  right  to  enjoy  easy  terms  in  the  payment  of  the 
land  that  he  occupies. 

These  terms  are  understood  to  be  the  following:  The  im- 
migrant may  pay  in  cash  or  in  five  yearly  installments.  In  the 
latter  case,  5  per  cent  annually  will  be  added  to  the  value  of  the 
lands  occupied.  The  immigrant  may  commence  to  pay  the 
yearly  installments  beginning  with  the  third  year  of  his  oc- 
cupancy, with  a  5  per  cent  reduction  on  the  amounts  paid  in 
advance. 

(f)  The  right  to  request  of  the  Immigration  Office  such 
data,  suggestions,  recommendations,  and  accommodations  as 
may  be  granted  him  in  conformity  with  these  rules  and  regula- 
tions. 

Section  II. — Concerning  the  distribution  and  ozcnersliip  of 

lands. 

Art.  3.  The  immigrant  who  observes  the  requisites  pre- 
scribed by  these  rules  and  regulations  has  the  right  to  acquire 
public  lands  under  the  conditions  hereinafter  mentioned. 

Art.  4.  The  lots  shall  be  surveyed  and  marked  by  the   en- 


17 

gineers  commissioned  by  the  Department  of  Colonization  and 
Agriculture,  and  the  adjudication  shall  be  made  by  means  of  a 
deed. 

Art.  5.  The  immigrants  may  freely  select  the  land  they  de- 
sire in  the  designated  immigration  zones,  paying  the  price 
fixed,  and  in  accordance  with  the  conditions  specified  in  ar- 
ticle 2. 

Art.  6.  Children  over  18  years  of  age  shall  have  the  right 
to  acquire  lots  to  locate  upon  separately  whenever  they  so  re- 
quest. 

Art.  7.  The  immigrant  who  possesses  a  certain  lot  may  ac- 
quire, by  purchase  or  other  regular  means,  not  exceeding  two 
more  lots,  but  only  after  three  years  of  residence  or  actual  cul- 
tivation of  his  lot. 

Art.  8.  No  immigrant  shall  possess  more  than  three  lots  by 
purchase,  mortgage,  or  any  other  means. 

Art.  9.  In  case  of  a  division  of  an  inheritance  the  division  of 
a  lot  of  less  than  16  hectares  shall  not  be  permitted. 

Art.  10.  The  lots  shall  be  delivered  with  their  respective 
measurements  and  demarcation. 

Art.  II.  On  measuring  the  lots  an  intervening  lot  shall  be 
left  between  each  adjudication. 

Art.  12.  Deeds  or  titles  for  immigrants  are  divided  into  two 
classes — provisional  and  definite. 

(a)  The  first  class  shall  be  signed  by  the  agent  of  the  Gov- 
ernment and  delivered  to  the  immigrants  who  acquire  lands  on 
time  payments.  The  second  class  of  titles  shall  be  signed  by 
the  Government  and  in  the  presence  of  the  Notary  of  the 
Treasury,  and  shall  be  delivered  to  such  immigrants  as  shall 
have  paid  their  indebtedness. 

(b)  The  provisional  or  definite  titles  shall  be  delivered  with- 
out charge  to  the  immigrants  at  their  request. 

(c)  In  case  of  a  purchase  on  time,  the  immigrant  shall  not 
alienate,  hypothecate  nor  subject  the  lands  or  improvements 
made  thereon  to  any  incumbrance,  it  being  understood  that 
both  the  lands  and  the  improvements  are  pledged  to  the  Public 
Treasury  until  complete  payment  of  the  lot  is  made. 

This  provision  does  not  include  the  case  of  a  legitimate  in- 


18 

heritance,  in  which  the  property  will  pass  to  the  heir  with  its 
mortgage  and  incumbrances. 

(d)  The  provisional  and  definite  titles  shall  be  recorded  in 
a  special  book  in  the  Bureau  of  Labor,  and  shall  also  be  regis- 
tered in  the  Notarial  Office  of  the  Treasury. 

(c)  In  the  premise  or  body  of  the  definite  titles  there  shall 
be  set  forth :  First,  the  exact  description  of  the  boundaries  of 
the  lot ;  second,  the  length  and  directions  of  the  dividing  lines ; 
third,  the  square  surface  and  the  names  of  the  adjoining  lots, 
and  fourth,  the  conditions  and  obligations  to  which  the  pur- 
chasing colonists  are  subject.  Each  deed  must  contain  a  small 
plan  of  the  property. 

Art.  13.  Every  immigrant  who,  within  two  years  from  ac- 
quiring his  title  calculated  from  the  date  of  entry  into  posses- 
sion, has  not  established  his  permanent  residence  nor  begun  the 
cultivation  of  the  land,  shall  lose  the  right  to  the  lot,  which 
shall  be  sold  at  public  auction,  after  having  been  duly  adver- 
tised. 

From  the  product  of  the  sale  there  shall  be  deduced,  in  the 
first  place,  the  amount  of  the  indebtedness  to  the  State,  then 
the  indebtedness  to  which  the  property  is  subject,  and  the  re- 
mainder shall  be  delivered  to  the  immigrant,  and  in  his  absence 
deposited  in  the  National  Treasury. 

Section  III. — Concerning  the  bureau  of  information  and  the 
reception  of  immigrants. 

Art.  14.  The  consulates  of  the  Republic  in  general,  and 
especially  the  consular  offices  at  Hamburg,  Vienna,  Antwerp, 
Barcelona,  Paris,  Bordeaux,  Havre,  Marseilles,  Lyon,  Lon- 
don, Liverpool,  Genoa,  Naples,  Rome,  Turin,  Milan,  Lisbon, 
Stockholm,  Berne  and  Geneva,  hereby  become  emigration 
offices  for  emigrants,  and  direct  agents  of  the  Government. 

Art.  15.  It  is  the  duty  of  these  offices  to  procure  for  immi- 
grants and  industrial  workers  who  so  request  detail  informa- 
tion concerning  the  country  and  its  natural  commercial  and  in- 
dustrial conditions ;  to  use  their  influence  in  negotiating  for  ac- 
commodations for  moving  the  immigrant  and  advantageous 
conditions   of   transportation,   especially   with   the   steamship 


19 


companies,  with  whom  they  treat  for  a  reduction,  which  is 

generally  granted  to  groups  of  immigrants. 

To  this  end  the  Department  of  Colonization  will  forward 

propaganda  publications  in  the  principal  languages,  and  all 

the  suggestions  and  instructions  that  may  be  necessary. 

Art    i6.  The  bureaus  of  information  shall  have  a  special 

subvention  to  pay  the  expenses  of  propaganda. 

Art   17    The  emigration  agents  shall  send  with  each  group 

of  immigrants  a  list  of  the  persons  who  compose  the  group, 

givin-  the  following  information :  Name  of  the  steamer  carry- 
ing the  group,  date  of  sailing,  Christian  and  surname  of  the 
immigrant,  his  age,  sex,  condition   (single,  married,  or  wid- 

-owed),  nationality,  occupation,  whether  he  can  read  or  write, 
point  of  embarkation,  and  place  of  destination.  It  shall  also 
be  indicated  whether  the  immigrants  come  in  a  private  capacity 
or  whether  they  are  contracted  for  by  immigration  or  coloniza- 

tion  companies.  .        .   1     r       -^ 

Art  18.  The  emigration  agents  shall  require  of  the  free  im- 
migrants a  certificate  of  the  municipal  district  from  which  they 
come,  setting  forth  their  character,  trade,  or  profession,  and 
their  known  personal  conditions. 

Art  10  If  the  emigration  should  be  made  collectively  under 
the  direction  of  companies  or  at  the  request  of  a  private  person, 
the  official  agent  of  the  Government  shall  intervene  m  the  con- 
tract and  shall  attend  to  the  embarking  of  the  ™™g""t^^"d 
other  matters  related  thereto.  In  addition  he  shall  see  that  the 
emigration  companies  state  the  truth  to  the  ,mm,grants  and 
e.xpfain  the  conditions  of  the  contract,  so  that  they  may  not  be 
deceived  by  promises  and  exaggerated  statements  wh.ch  ^vould 
result  in  iniurv  to  the  country. 

Art  .0.  There  shall  be  established  in  the  Department  of 
Colonization  and  Agriculture  a  special  office  called  the  "Bureat, 
of  Labor,"  which  shall  have  exclusive  charge  of  .mm.grat.on 

" ArTs.  The  Bureau  of  Labor  shall  arrange  to  receive  the 
immigrants,  arrange  for  the  transportation  of  their  persons  and 
baggage  designate  the  lots  of  land  they  are  to  occupy,  and  find 
occupatiin  fofthem  if  they  are  artisans  or  professional  men. 


20 

Tlie  bureau  of  Labor  shall  register  them  in  the  proper  book 
and  obtain  for  them  all  kinds  of  accommodations  until  they  are 
settled. 

Art.  22.  Said  Bureau  shall  keep  a  registration  book  of  im- 
migrants, giving  all  particulars  in  each  case;  also  a  register 
book  of  lots  of  land  adjudicated,  and  a  book  or  books  of  re- 
ceipts and  disbursements. 

Art.  2-}^.  The  funds  appropriated  for  the  promotion  of  im- 
migration shall  be  disbursed  by  this  Bureau. 

Art.  24.  Persons  desiring  to  contract  immigrants  among  in- 
dividuals who  privately  set  out  for  this  country  as  well  as  in 
the  immigration  centers  of  Europe  must  negotiate  with  the 
Bureau  of  Labor  if  they  wish  to  enjoy  the  privileges  of  these 
rules  and  regulations,  in  which  case  they  shall  request  permis- 
sion in  writing  of  the  Department  of  Colonization  before  land- 
ing the  immigrants,  stating  the  number  cA  individuals  they  de- 
sire to  bring  in,  the  work  at  which  they  are  to  be  employed,  and 
their  submission  to  the  provisions  of  these  rules  and  regula- 
tions. 

Art.  25.  Private  contracts  with  immigrants  made  without 
fulfilling  the  foregoing  conditions  shall  not  enjoy  any  of  the 
privileges  granted  by  these  rules  and  regulations. 

Art.  26.  In  the  capitals  of  the  Department  immigration  com- 
mittees shall  be  formed,  composed  of  the  prefect  of  the  De- 
partment, a  member  of  the  municipal  council,  and  a  secretary 
of  election,  the  latter  officer  bping  salaried,  and  these  commit- 
tees shall  cooperate  with  the  main  office  of  the  Bureau  of  Labor 
in  all  of  their  works,  especially  in  the  location  and  settlement 
of  the  immigrants  in  the  zones  and  regions  to  which  they  are 
destined. 

Section  IV. — Funds  for  propaganda. 

Art.  2/.  The  following  shall  be  considered  special  funds  for 
the  promotion  of  immigration :  Those  set  aside  in  the  budget 
of  the  respective  Department  for  this  purpose. 

Art.  28.  The  inversion  of  these  funds  and  of  others  that 
may  be  appropriated  for  the  purpose  shall  be  for  publications 


21 

of  propaganda,  the  payment  of  passage  to  private  transporta^ 
tion  companies,  and  expenses  of  the  Bureau  of  Labor  and  of 
the  immigration  offices  in  Europe. 

Section  V. — Rights  and  obligations  of  immigrants. 

Art.  29.  In  addition  to  the  special  privileges  granted  in 
these  rules  and  regulations  immigrants  shall  enjoy  the  guaran- 
tees conceded  to  foreigners  by  the  political  constitution  of  the 
State. 

Art.  30.  Immigrants  must  obey  the  laws  of  the  country  and 
observe  the  special  immigration  and  colonization  rules  and 
regulations  that  the  authorities  may  enact. 

Art.  31.  Centers  of  immigration  having  one  hundred  fami- 
lies shall  have  schools  for  both  sexes  supported  by  the  State. 

Art.  32.  The  Department  of  Colonization  and  Agriculture 
is  charged  with  the  execution  of  the  present  decree. 


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